Fiduciary financial advisor in St. Louis. For St. Louis residents who don't have the time, knowledge, or interest to manage their investments and retirement accounts themselves, working with a financial advisor offers peace of mind and assurance that their long-term interests are protected and their hard-earned money is growing. Trust is paramount in that relationship, and whether you're planning for retirement, seeking to grow your wealth, or ensuring a secure financial future for your family, the knowledge, skill, and integrity of your financial advisor matter greatly. By choosing a fiduciary financial advisor in [city], [state], you'll have a partner who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our St. Louis fiduciary financial advisors will never recommend a product, investment, or strategy that we don't genuinely believe in ourselves. For financial advisors that adhere to the fiduciary standard and act with your best interest at heart, call Correct Capital today at 314-930-401(k), contact us online, or schedule an appointment with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a person or entity that holds a position of trust and responsibility when managing or handling assets, finances, or legal matters on behalf of someone else. Fiduciaries are legally and ethically bound to act in the best interests of the person or entity they are serving, often referred to as their "principal" or "beneficiary." This duty of loyalty and duty of care is known as the fiduciary standard.
Common examples of fiduciaries include:
- Trustees — Individuals or institutions responsible for managing and overseeing assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals appointed to manage the estate and assets of a deceased person according to their will or the law.
- Financial advisors — Professionals who provide financial advice and manage investments for clients, with an obligation to prioritize the client's financial well-being.
- Corporate directors — Members of a company's board of directors who are entrusted with making decisions in the best interests of the shareholders.
- Guardians — Individuals appointed by the court to make decisions on behalf of minors or individuals who are unable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to act in the best interests of their clients when handling legal matters.
- Real estate agents — Professionals who assist clients in buying, selling, or renting properties and are expected to act in the best interests of their clients in real estate transactions.
Good Faith, Duty of Loyalty, and Duty of Care
There are three important aspects to understanding a fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they deal with their beneficiaries honestly, with sincerity, and without any intention to deceive or harm the interests of their beneficiaries. They must always act honestly and with the best interests of the beneficiary in mind.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the beneficiary, which means they must prioritize the beneficiary's interests above their own. They should avoid any conflicts of interest that could compromise their ability to act solely in the beneficiary's best interests. If they're unable to avoid a conflict of interest, they must disclose it to their beneficiary still act in the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the level of care, skill, and diligence that a prudent person would use in similar circumstances. They must make informed and thoughtful decisions when managing assets or making decisions on behalf of the beneficiary. This duty ensures that they do their best to protect and grow the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in St. Louis?
Financial advisors in St. Louis help individuals, families, and business owners achieve their life goals through a variety of financial services and recommendations. These services include investment strategies, retirement planning, tax planning, estate planning, portfolio management and more.
Anyone in St. Louis can call themselves a "financial advisor," but to be a fiduciary, an advisor has to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and keeping these certifications require continuous education and a strict moral standard.
For example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must follow the CFP Board's Code of Ethics and Standards of Conduct to:
- Act with honesty, integrity, competence, and diligence
- Act in the client’s best interests
- Exercise due care
- Avoid or disclose and manage conflicts of interest
- Maintain the confidentiality and protect the privacy of client information
- Act in a manner that reflects positively on the financial planning profession and CFP® certification
Are All Financial Advisors in St. Louis Fiduciaries?
Not all financial advisors in St. Louis are fiduciaries. The key reason is that financial advisors can operate under different regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory frameworks depending on their business model. For instance, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors operate under the suitability standard, which requires recommendations to be suitable for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can influence their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, making their compensation transparent and reducing conflicts of interest. Non-fiduciary advisors may receive commissions or other forms of compensation tied to product sales, which means they may make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors must abide by the Prudent-Person Rule, also known as the prudent investor rule. The rule acknowledges that financial advisors can't predict the future or know which investments will be profitable with 100% certainty, but stipulates that a fiduciary financial advisor purchase investments that a reasonable person would purchase from an acceptable risk based on the clients goals and investment objective.
The prudent person rule originates in common law, and was eventually unified with the Uniform Prudent Investor Act. Each state can apply their own specific laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The role that each investment or course of action plays within your portfolio
- Expected return and appreciation of capital
- Other assets and resources you have
- Your needs for liquidity, income, and preservation of capital
- An asset's special relationship or value to you, if any
- The size and nature of your portfolio, its distribution requirements, and the estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in St. Louis
Choosing to work with a fiduciary financial advisor in St. Louis comes with a host of advantages that can significantly impact your financial well-being:
- Fiduciary financial advisers must act in your best interest and maintain professional standards
- Full disclosure of relevant materials and facts and full transparency with issues like risks, fees, and potential conflicts of interest, allowing you to make the best decisions for you and your St. Louis family
- Make investments on your behalf by leveraging their expertise to create and manage a diversified portfolio that aligns with your financial goals and risk tolerance
- Comprehensive financial planning and a holistic approach to your financial well-being, considering all aspects of your financial life to create a personalized approach
- Ongoing monitoring and guidance to ensure your financial strategies and investments remain on track and that you can adapt to any curveballs the market or life throws your way
- Minimized risk with prudent and responsible investment choices made by carefully assessing the risk associated with each investment and tailoring your portfolio to match your risk tolerance
- Peace of mind that your best interests are being watched over by experienced financial professionals
- A long-term relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life circumstances change
Hire Correct Capital as Your St. Louis Fiduciary Financial Advisor
Choosing a financial advisor in St. Louis with a fiduciary standard is crucial to ensure your long-term interests stay protected. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who prioritize the financial success and peace of mind of St. Louis individuals and business owners alike. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications needed to guide you on your financial journey. We offer all our clients our I.O.U promise: all of our advice will be independent, objective, and unbiased.